NEW YORK/LONDON – Newly launched bitcoin futures on Monday suggested that traders expect the cryptocurrency’s blistering price gains to slow in the coming months, even as it blasted above $17,000 to a fresh record high in the spot market.
Chicago-based derivatives exchange Cboe Global Markets (CBOE.O) launched the futures late on Sunday, marking the first time investors could get exposure to the bitcoin market via a large, regulated exchange.
The one-month bitcoin contract opened at 6pm local time (2300 GMT) on Sunday at $15,460. By late afternoon on Monday in New York, it was trading at $18,650, roughly 8 per cent above bitcoin’s spot price of $16,900 on the Bitstamp exchange BTC=BTSP.
Bitcoin earlier hit a record high of $17,270.
Its steep gains and rapid rise have attracted investors around the world as well as intense scrutiny from government regulators, which is the very opposite of what its creators wanted when it first launched bitcoin more than eight years ago.
Given bitcoin has almost tripled in value over the past month, and was up more than 15 per cent on Monday alone, the futures pricing suggested investors see price increases moderating.
Bitcoin futures were already offered on some unregulated cryptocurrency exchanges outside the United States, but backers said the US market debut would confer greater legitimacy on the volatile cryptocurrency and encourage its wider use.
The CME Group is expected to launch its futures contract on December 17.
